Warm and fuzzy – Banks and Social Media

Banks and customers alike have been a little wary when it comes to Banks being on Social Media. I mean banking is serious business, is it not? So what can you do on Social Media without compromising all kinds of security? Does it not go beyond sacrilegious into all kinds of scary?

Times are changing. Customers have changed. And Banks have to keep up or be left out.

Several banks have already started to get on Social Media websites, slowly changing the way they operate in order to keep with the changes in the world around.

Some banks have tried to build their community using Social Media. Just a digital extension of the age old system where the bank was at the end of the street where you lived and the manager knew you from the time your father opened your first bank account for you.

Banks are slowly trying to move away from the image of the imposing executive in a pinstriped suit to one that is warm and fuzzy and as an entity that is “close” to its customers. And this is very important for a Bank to do.

We live in times where many options are available to choose from and customers are very informed. With smartphones empowering them with all kinds of information, what differentiates a winner from the others, has to be something other than just a great product offering. Let’s face it – banks offer almost identical products.

Also the young man or woman of today has so many reasons to go to a bank – student loans if he wants to get a fancy foreign degree, getting his or her first car, maybe even for putting his roots down and paying for his first home! Getting the attention and then the business of this group is essential to a bank’s growth.

But Social Media? Is that the way to go? I mean, aren’t you setting yourself for a scenario where the whole world will know if there is a problem a customer has with you? What about your reputation? Just about anyone can post some negative stuff about you in a public domain!

Banks getting on Social Media conveys a message that they know what they are doing. They are confident about the products they offer. And if someone has something negative to say, they have a great opportunity of addressing it right then and there.